CMA deems supermarket loyalty promotions not misleading shoppers

The Competition and Markets Authority (CMA) has officially cleared supermarkets of using misleading loyalty promotions, having failed to find any evidence to the contrary in the industry. 

It comes as the authority published its cost-of-living report last week, which recognised that “effective competition” between retailers was keeping prices as low as possible for customers. 

The British Retail Consortium has welcomed the CMA’s update, saying that it “once again shows that supermarkets are doing their best to provide great value groceries”.

Helen Dickinson, chief executive of BRC, said: “With food inflation now returning to normal levels, fierce competition between retailers is ensuring customers are the big winners from the UK’s supermarket sector.

However, the CMA still found that prices for motorists at petrol stations were still too high and there was a lack of competition among fuel retailers, which was “failing consumers”.

According to the report, retailers’ fuel margins were found to be “still significantly above historic levels”, with margins at supermarkets roughly double where they were in 2019. 

The authority revealed that motorists paid £1.6bn more for petrol and diesel in 2023 compared with 2019, spelling a £700m hike from the £900m in extra charges announced in 2022. 

Sarah Cardell, the chief executive of the CMA expressed concern at these findings, warning that “high road fuel prices put pressure on households and businesses”. 

Dickinson added: “The fuel market covers both supermarkets and non-supermarket fuel retailers. Supermarkets remain focused on delivering the best overall value for their customers across all products that they sell, including food and petrol.

“Retailers will continue to work closely with the CMA and provide the necessary data to allow consumers to find the best prices for petrol and diesel.”